Monday Morning Chartology--5/6/13

The Morning Call

5/6/13

The Market

           

    Technical

       Monday Morning Chartology

            The S&P acts like the sky is the limit and for the last six months it has been.  It remains within all its major uptrends.  I continue to believe that the upper boundary of its long term uptrend (1750) will likely prove the limit.

            http://www.zerohedge.com/news/2013-05-03/are-stocks-still-cheap

            GLD has lost much of its recent volatility.  It remains near the lower boundary of its intermediate term downtrend.  Nothing to do until it tests its recent low.

            http://www.zerohedge.com/news/2013-05-03/elliotts-singer-bernanke-destroying-value-money-and-uprooting-basic-stability-societ

The VIX remains with its short and intermediate term downtrends.  It is also back near the lower boundary of its long term trading range.  For traders, as it nears that lower boundary, buying the VIX may be appealing as a hedge against a down turn in equity prices.

         

            Update on ‘the best stock market indicator ever’:

            http://advisorperspectives.com/dshort/guest/John-Carlucci-Best-Indicator-Ever-Update.php

    Fundamental

    

            The latest from Ron Paul (medium):

            http://www.zerohedge.com/news/2013-05-05/ron-paul-house-cards

            A ‘bubble’ in ‘safe’ assets (medium and a must read):

            http://www.zerohedge.com/news/2013-05-03/guest-post-bubble-%E2%80%98safety%E2%80%99-driven-bond-funds

            Update on this season’s earnings and revenues ‘beat’ rate (short):

            http://www.bespokeinvest.com/thinkbig/2013/5/3/another-week-in-the-books.html

            The triumph of hope over reality (short):

            http://www.zerohedge.com/news/2013-05-05/visualizing-triumph-hope-over-reality

            ***over night Chinese services PMI fell while most EU service PMI’s rose.

      News on Stocks in Our Portfolios

 

Economics

   This Week’s Data

   Other

            Preventing the next crash (medium):

            http://blog-imfdirect.imf.org/2013/05/03/preventing-the-next-catastrophe-where-do-we-stand/

Politics

  Domestic

Thoughts on political correctness (medium):

http://www.nationalreview.com/article/347261/sanitized-society-puts-hygiene-hypothesis-test

Behind the new bank reform legislation (medium):

http://www.nakedcapitalism.com/2013/05/lynn-parramore-how-a-much-heralded-bank-reform-proposal-could-actually-blow-up-the-american-economy.html

  International War Against Radical Islam

            Benghazi talking points (medium/long and a must read):

            http://www.weeklystandard.com/articles/benghazi-talking-points_720543.html

Steve Cook received his education in investments from Harvard, where he earned an MBA, New York University, where he did post graduate work in economics and financial analysis and the CFA Institute, where he earned the Chartered Financial Analysts designation in 1973. His 40 years of investment experience includes institutional portfolio management at Scudder, Stevens and Clark and Bear Stearns. Steve's goal at